On the back of the profits made by the real estate sector and merging of foreign currency-denominated B shares into the yuan-denominated A-shares boosted Chinese stocks on the second day of the week. China's benchmark Shanghai Composite Index was up 0.4%, or 10.94 points, at 2650.31 on Tuesday.
The Chinese economy has seen a steady increase in Internet users as they are becoming aware of modern developments and choosing highly ranked products and services for their browsing needs. The Chinese Internet market is the largest in the world with 420 million users online. A $60 million deal involving the Tencent Holdings Ltd, China’s biggest Internet company and a Google-backed Chinese social networking company pushed the stocks up on the benchmark index.
However, the blue-chip Hang Seng Index traded with relatively low volumes today erasing the positive impact as the shares listed on the index ended flat by 1.1%. The biggest loser on the Hang Seng Index today was Aluminum Corp., stocks of which were hit due to higher aluminum prices falling by 4.4%.
The overall performance of the Chinese stocks were below market expectations, with analysts pointing out the disappointing result to lower margins due to higher costs.
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